Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Investor Presentation (August 2015)
18 slides from Dorman Products's investor presentation, August 2015
Slide 1: New Products, New Solutions, New Opportunities
> ‘ rw mm» August 2015 NEW PRODUCTS * NEW SOLUTIONS * NEW OPPORTUNITIES
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “demonstrate,” “expect,” “estimate,” “forecast,” “anticipate,” “should” and “likely” and sim
Slide 3: Agenda
Agenda Dorman Snapshot Industry Dynamics Growth Strategy Financial Results Summary 3
Slide 4: Dorman History
Dorman History ► Founded in 1978 • NASDAQ Listed Since 1991: DORM • Founding Family = 24% Ownership ► Leading Aftermarket Supplier of Dealer Exclusive Parts ► Net Sales of $759 Million on Trailing 12 Months • 4% net sales growth on trailing 12 month basis • 5 year CAGR of 14% through Q2 2015 — All O
Slide 5: Dorman's Core Automotive Competencies
Dorman’s Core Automotive Competencies Unique Business Model: Broad Distribution “New-to-the-Aftermarket” U.S. Other Traditional 6% 45% U.S. Retail 49% Global Design, Development Broad Product Portfolio and Sourcing Capabilities Focuses on ‘Niche’ Offerings Hardware Auto Body 8% 29% Chassis 26% Power
Slide 6: Industry Dynamics
Industry Dynamics Sources: 2016 Auto Care Association Factbook, US Dept of Trans, and US Energy Information Admin. 6
Slide 7: New Products Driving Growth
New Products Driving Growth ► Growth Rates Outpace the Broader Aftermarket ► New Product Revenues Creates Growth • Items Previously Only Available at the OE Dealer or Salvage Yard • New Products = Comp Store Sales Growth for Customers NEW 7
Slide 8: New-to-the-Aftermarket Products
New-to-the-Aftermarket Products New Product Sales Opportunities for Our Customers: 2012 2013 2014 YTD Q2 15 LTM Q2 15 New to the Aftermarket 804 873 1,266 648 1,220 Line Extensions (many of which are exclusive items) 1,911 2,587 2,476 1,065 2,239 Total unique parts introduced 2,715 3,460 3,742 1,713
Slide 9: New-to-the-Aftermarket Engine
New-to-the-Aftermarket Engine ► Unique Installer Relationships and Feedback Network to Identify Failure-prone OEM Parts • Products introduced in last two years generated 20% of Sales in first half of 2015 ► Culture of Contribution Drives Innovation • 360+ product personnel in 16 co-located teams in
Slide 10: Awareness Designed to Change Buying Habits
Awareness Designed to Change Buying Habits Drive awareness for Dorman’s products and brands Accelerate the placement of NEW to be first to market Communicate the Dorman Advantage to differentiate our added value Provide product knowledge training to our Sales Team and Customers How we drive awarenes
Slide 11: Growth
Growth Market Expansion ► US and Canadian Light Duty Automotive Markets ► Medium & Heavy Duty Aftermarket • Currently ~1% of Sales ► Mexico Opportunistic Acquisitions ► Expertise in Automotive ► Heavy Duty Distribution ► New North American Market Distribution 11
Slide 12: Financial Results Summary
Financial Results Summary ► Consistent track record of organic revenue and EPS growth • 5 year sales CAGR of 16% through 2014 • 5 year EPS CAGR of 27% through 2014 ► Stable gross and operating margin trends ► SG&A leverage despite higher product development investments ► Operating margin expansion ►
Slide 13: Strong Organic Sales and Earnings Growth
Strong Organic Sales and Earnings Growth Sales (in millions) – 5 year CAGR 16% EPS – 5 year CAGR 27% Second Quarter YTD Sales growth - ERP transition costs in 2015 • $2.7 million ($0.05 per 2 year CAGR of share) in non-recurring 10.6% distribution expenses • $2.0 million ($0.03 per share) in recurri
Slide 14: Summary Income Statement
Summary Income Statement Six Months Fiscal Year 2014 2015 2013 2014 Net Sales $ 379,699 $ 387,195 $ 664,466 $ 751,476 Gross Profit 144,603 149,463 260,968 287,201 Margin 38.1% 38.6% 39.3% 38.2% SG&A 70,956 78,916 133,029 146,467 Op. Income 73,647 70,547 127,939 140,734 Margin 19.4% 18.2% 19.3% 18.7%
Slide 15: Summary Balance Sheet
Summary Balance Sheet December June 2014 2015 Cash $ 47,656 $ 67,199 AR 206,035 197,292 Inventory 173,523 198,782 Other current assets 28,250 29,528 P,P & E, net 82,270 85,202 Goodwill and other assets 42,634 47,290 Total Assets $ 580,368 $ 625,293 Debt $ - $ - Current liabilities 90,833 94,053 Long
Slide 16: Summary Cash Flows
Summary Cash Flows Six Months Fiscal Year 2014 2015 2013 2014 Net Income $ 46,795 $ 44,482 $ 81,920 $ 89,987 Dep'n and Amort'n 5,836 7,596 10,159 12,658 Change in AR (7,481) 8,708 (40,791) (25,566) Change in Inventory (17,419) (25,259) (18,537) (13,136) Change in AP (2,551) 8,476 17,627 (1,558) Othe
Slide 17: Recap
Recap ► Dominant New-to-the-Aftermarket Parts Supplier ► Strong Growth Opportunities ► Long Track Record of Revenue and Cash Flow Growth ► Solid Balance sheet 17
Slide 18: Questions?
Questions? Matt Barton Matt Kohnke President Chief Financial Officer mbarton@dormanproducts.com mkohnke@dormanproducts.com 215-712-5132 215-712-5182 18
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